Department of economic affairs special secretary (insurance), PK Bannerjee said that IRDA, which is in the process of finalising the regulations, will be receiving applications from prospective applicants by July-August. The issue of licenses to new companies can be expected by the year end, he said.Some regulations would be finalised in the first meeting of the insurance advisory committee constituted by IRDA that is scheduled for next week, Bannerjee said.

The government intended to make the entry process "transparent and friendly" for both foreign and domestic companies, he said. "We expect only strong companies, which have a long term perspective to obtain licenses do business."

On the new regulations, IRDA chairman N Rangachary said that the authority intended to adopt some new accounting rules to ensure compliance with international best practices that protect customer interests.